Key Takeaways
- • Dynamic Funds launched Dynamic Credit Opportunities Fund on October 11, 2023, a liquid alternative mutual fund designed to generate absolute returns through long and short positions in corporate debt securities across the credit spectrum.
- • The fund targets multiple asset classes including investment-grade corporate bonds, high yield bonds, preferred shares, hybrids, and loans, with portfolio management led by Vice President & Senior Portfolio Manager Marc-Andre Gaudreau and his team, who collectively bring nearly two decades of fixed-income credit experience.
- • The fund employs a flexible, top-down and bottom-up investment process to navigate macroeconomic shifts and capture opportunities while managing risk across diversified credit exposures and alternative strategies.
- • Concurrent with the launch, Dynamic Funds updated the fund's French name to Fonds d'opportunites de credit Dynamique and raised the performance fee hurdle rate cap to 6%.
Summary
Dynamic Funds announced the launch of Dynamic Credit Opportunities Fund on October 11, 2023, positioning the product as a liquid alternative solution tailored to navigate volatile macroeconomic conditions. According to Mark Brisley, Managing Director at Dynamic Funds, the fund addresses the challenge of shifting market environments by providing an experienced credit investment team with flexibility to deploy both traditional and alternative fixed-income strategies across multiple asset classes.
The fund's investment mandate centers on generating absolute returns over a complete market cycle through simultaneous long and short positions in primarily corporate debt securities. The strategy encompasses a broad credit spectrum including investment-grade corporate bonds, high yield bonds, preferred shares, hybrids, and loans. This diversified approach seeks enhanced risk-adjusted returns by systematically evaluating the risk-reward relationship of individual investments within a portfolio framework.
Marc-Andre Gaudreau, Vice President & Senior Portfolio Manager, will lead active management of the fund alongside his team. The management group brings nearly two decades of experience in fixed-income credit investing and applies a comprehensive investment process combining top-down macroeconomic analysis with bottom-up credit selection. The fund's structure as a liquid alternative mutual fund permits deployment of strategies and asset classes restricted under conventional mutual fund frameworks.
Concurrent with the fund's launch, Dynamic Funds implemented administrative updates to the product structure. The fund's French-language designation changed to Fonds d'opportunites de credit Dynamique effective October 11, 2023, and the performance fee hurdle rate cap was increased to 6%. As with all mutual fund investments, investors should review the prospectus prior to committing capital, with commissions, trailing commissions, management fees, and expenses applicable to the investment.
The fund's investment mandate centers on generating absolute returns over a complete market cycle through simultaneous long and short positions in primarily corporate debt securities. The strategy encompasses a broad credit spectrum including investment-grade corporate bonds, high yield bonds, preferred shares, hybrids, and loans. This diversified approach seeks enhanced risk-adjusted returns by systematically evaluating the risk-reward relationship of individual investments within a portfolio framework.
Marc-Andre Gaudreau, Vice President & Senior Portfolio Manager, will lead active management of the fund alongside his team. The management group brings nearly two decades of experience in fixed-income credit investing and applies a comprehensive investment process combining top-down macroeconomic analysis with bottom-up credit selection. The fund's structure as a liquid alternative mutual fund permits deployment of strategies and asset classes restricted under conventional mutual fund frameworks.
Concurrent with the fund's launch, Dynamic Funds implemented administrative updates to the product structure. The fund's French-language designation changed to Fonds d'opportunites de credit Dynamique effective October 11, 2023, and the performance fee hurdle rate cap was increased to 6%. As with all mutual fund investments, investors should review the prospectus prior to committing capital, with commissions, trailing commissions, management fees, and expenses applicable to the investment.
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